How to Buy Classic Car Insurance
Collector Car Insurance and Classic Car Insurance
If you are fortunate enough to own a classic car
- or any collectible automobile - then you want to ensure that your
luck does not run out because of having inadequate insurance coverage.
Call it covering your butt - or covering your "asset" - but by all
means, call one of the major providers such as American Collectors,
Haggerty, or Parish Heacock insurance companies and let them put
you in the driver's seat in terms of professional protection of
your cherished automotive investment.
How to Kick the Tires on Classic Car Insurance
The whole idea of insurance is that it needs to do what you expect
of it in an emergency, when the rubber really hits the road. And
classic car insurance is as different from conventional auto insurance
as, well, a classic car is from your run of the mill generic vehicle.
When you buy a classic car insurance policy, you are essentially
purchasing protection for those times when - God forbid and knock
on wood it doesn't happen - disaster strikes in the form of a fire,
a collision, or an act of theft or vandalism. Just as we now have
modern airbags to save us in the event of a crash, we also have
collector's car insurance, to protect us with adequate moneybags
when calamity throws a wrench in the works.
The time you invest in choosing the right classic car insurance
coverage is well worth the value and peace of mind that a quality
collector's insurance policy delivers for owners of classic motor
cars.
The Nuts and Bolts of Classic Car Insurance Coverage
Collector car insurance is not the same as the insurance you buy
for normal coverage of your daily transportation. Collector car
insurance, or classic car insurance, is made especially for the
needs of the car collector. And while ordinary insurance does offer
some protection, no matter what you drive, it can leave you high
and dry in the event of a loss that it not effectively covered by
the terms of the insurance contract.
For example, you may have a garage-kept Cadillac Sedan DeVille
with swooping fins your grandparents bought for $7,000 brand new
back in the 1960s. But dealers have offered you three times that
much, and you saw another one sell at an auto show for $35,000.
If you don't have special collector car insurance or classic car
insurance, and the car is totaled, you will be lucky to get $7,000
for it. With depreciation calculated in, the insurance statisticians
may decide that it is worth only half that much, or less, and you
could wind up with two or three grand in exchange for your dream
machine.
Stipulations or requirements normally encountered while
shopping for collector car insurance or classic car insurance:
- A decent driving record.
- At least 10 years driving experience
- No teen drivers on the policy or drivers with poor driving records
- Secure and out of the weather garage
- Proof that you have another car for daily transportation
- Collector vehicle insurance is sometimes limited by the age
of your car, and if your car is too young it may not qualify for
a particular policy.
- Limited mileage. You probably don't want to drive your creampuff
car all the time, and your insurance company doesn't want you
to either. Mileage limits have increased recently, though, so
if you can live with 250 miles a month you're probably okay.
Coverage with collector car insurance or classic
car insurance: Three kinds of value are important
to understand when buying your policy. 1) Actual cash value: This
is what you usually get with ordinary insurance, and is based on
replacement cost minus depreciation.
2) Stated value:
The insurance company pays up to the stated value of the car, but
may not guarantee the full stated value. And deductibles of up to
$1,000 usually apply.
3) Agreed value:
In most jurisdictions, those who provide collector car insurance
or classic car insurance are allowed to insure for a value that
you and your insurer agree upon. And for most autos, there is no
deductible. If your $100,000 vintage Rolls get trashed, you get
a check for 100 grand, plain and simple - which is exactly why collectors
use special classic car insurance coverage.
Do a periodic review of your
coverage limits, because classic car prices are rising.
What you insured your cherry classic for ten years ago may be a
fraction of what it's worth today. And if you are restoring a vehicle,
ask your agent to give you appropriate insurance. There is no need
to pay extra based on mileage statistics, if your car is up on blocks
with no engine inside it. And as the car's value increases thanks
to your hard work of restoring it, you should raise the coverage
to keep up with the added value of the restoration.
Keep all your receipts and paperwork
- for everything from parts and labor to expenses incurred to take
it to a classic car show - so that you can document the total investment
your collector's car represents. And take photos and keep them updated,
for the same reason. And Last
But Not Least: Special Savings Opportunities
As long as you meet the criteria in terms of how you use and take
care of the car, you can usually buy a policy.
Traditional insurers will either refuse coverage, offer only a
replacement value based on the nuts and bolts (minus heavy depreciation)
of the car, or will charge you a prohibitive amount for the premium.
But many collectors find that special collector's coverage saves
them money - as much as half - while insuring them for higher limits,
sometime three or four times what a traditional company gave them.
Yes, it's possible to get collector's insurance coverage for full
market value for your car, and save up to 50 percent off of the
premium you'd pay with ordinary insurance. That makes classic car
insurance a must-have for any serious car buff.
Below is information about three of the most reputable
and dependable collectors and classic car insurance companies in
the USA (All information listed below subject to change, please
contact the insurance companies listed to be sure.):
Hagerty Insurance P.O. Box 1303 Traverse City,
MI 49685-1303
Email: auto@hagerty.com Toll
Free: 800-922-4050
Qualifications:
- Similar to the others listed below, but please contact Haggerty
for details.
American Collectors Insurance
P.O. Box 8343 Cherry Hill, NJ 08002 Email:
info@americancollectors.com
Toll Free: (800) 360-2277 Qualifications (subject
to change or regional laws so check with the company for specific
up-to-date information).
- At least 15 years old
- Garage-kept
- Driven on a limited, pleasure-only basis (up to 5,000 annual
miles - available in most states)
You may also qualify by:
- Having at least 10 years driving experience
- Having a good driving record
- Having at least one "regular" vehicle for every licensed driver
in the household You may request a policy application either directly
from American Collectors Insurance or through your local insurance
agent (rates are the same either way).
Parish Heacock Classic Car Insurance
P.O. Box 24807 Lakeland, FL 33802-4807 Email: info@parishheacock.com
Toll free: (800) 678-5173 Qualifications (subject to change or regional
laws so check with the company for specific up-to-date information).
- Each household member of driving age must have at least 10 years
driving experience or be excluded.
- Each household member must have a regular use vehicle less than
15 years old that is insured with liability limits equal to or
higher than the limits being applied for on the collectible vehicle.
- All licensed members of household and any other drivers of the
vehicle must be listed on the application.
- Maximum of two accidents or violations in the household, maximum
of one per licensed household member in past 3 years. No major
violations permitted in past 5 years.
- A Driver Health Questionnaire must be completed for all drivers
over 70 years old.
- Auto must be stored in a locked permanent garage facility when
not driven.
- Auto may not be used for commuting to or from work or school,
used for business purposes or as a substitute for another auto.
- Autos not covered while on a racetrack or when being used for:
racing, speed, driver's education, or timed events.
- Must display pride of ownership: well maintained, in restored
or well-preserved condition.
- Vehicles under restoration must be stored at residence or a
restoration shop, with a target date for completion. Agreed value
coverage is not available on cars under restoration. Eligibility
subject to company review.
- Replica Vehicles and Pro Street vehicles are subject to company
review.
- Trucks and Jeeps must be over 25 years old, and not be used
for towing, hauling, off-road or utility use.
- Generally do not require appraisals, but may ask for one if
vehicle value is difficult to determine.
Michael Modica is an avid musclecar fan. He is the webmaster of
the world's leading Second Generation Camaro resouce, http://www.nastyz28.com
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